What you need to know about IMU and TARI for second homes
Owning a second home often raises questions about taxes, particularly regarding IMU (Imposta Municipale Unica) and TARI (Tassa sui Rifiuti). Understanding your fiscal obligations and potential exemptions is crucial for effective financial management. This article delves into the regulations surrounding these taxes and addresses common concerns regarding the taxation of properties that are not primary residences.
Understanding IMU: The municipal property tax
IMU is applicable to all second homes, regardless of their cadastral category. This tax is not levied on properties classified as primary residences, but there are exceptions. Luxury properties, categorized under A1, A8, and A9, are still subject to IMU, even if they serve as the owner’s primary residence.
To calculate IMU for a second home, one must start with the cadastral income, which is subject to a 5% increase. This adjusted value is then multiplied by a specific coefficient, set at 160 for residential properties. Following this, the applicable tax rates established by local municipalities must be considered, which can vary widely and can be found on the Ministry of Finance’s website.
Typically, the base rate for second homes is 0.86%, but municipalities have the discretion to raise this rate up to 1.06% or reduce it as they see fit. In cases of co-ownership, the tax is calculated based on each owner’s share and the duration of usage. Each co-owner is responsible for their portion of the IMU tax.
Exploring TARI: Waste tax obligations
TARI is the waste tax that must be paid by anyone owning or controlling properties that generate waste, including second homes. Local authorities determine the rates, which may include discounts for specific circumstances, such as properties inhabited by a single person or vacation homes.
When a second home is rented out, the IMU is the responsibility of the property owner. However, the TARI may fall to the tenant if the property is rented under a long-term lease of at least six months. For short-term rentals, like vacation homes, the owner remains liable for the waste tax.
Obligations for unoccupied and inherited properties
It’s important to note that even unoccupied second homes are still required to pay IMU. However, if the property is deemed uninhabitable, there may be an opportunity for a discount. Regarding TARI, exemptions can only be granted if the property is both unoccupied and unusable, with proof of no utility connections required.
Inheriting a property, even if it’s just a portion, means you are liable for IMU, as it isn’t classified as a primary residence. Conversely, if a second home is loaned out for free, the owner is responsible for the IMU, but a 50% discount is available if the loan is to a first-degree relative.
Responsibilities of the comodataire
The comodataire, or the individual receiving the property, isn’t responsible for the IMU but must pay the TARI based on the property size and the number of residents. To prove that a home is uninhabited and inactive, specific documentation must be submitted to the municipality. In the event of an inspection, the municipality may verify the absence of furnishings and active utilities. If the property is furnished, TARI will still be due.
Final thoughts on managing tax obligations
It’s crucial to remember that even if you own multiple properties, only your primary residence is exempt from IMU. The regulations hinge on the concept of residency rather than the number of properties owned.
Managing taxes on second homes may seem daunting, but a thorough understanding of the regulations and available exemptions can help optimize costs. It is always advisable to consult with a tax expert to clarify any questions and stay informed about legislative changes.